CIBC Poll: Majority of Canadian Retirees happy with retirement today - but worried about running out of money over the long term

Some retirees vulnerable to short term financial shocks, and have long
term concerns about making their money last

TORONTO, Jan. 14, 2013 /CNW/ -A new CIBC (TSX: CM) (NYSE: CM) poll conducted by Leger Marketing
reveals that most of Canada's retirees feel positive about their
current finances in retirement, saying they are living the retirement
they hoped for today. However, some retirees are concerned they won't
be able to sustain their lifestyle over the long term and worry that
they will run out of money at a future date.

Key poll findings include:

69 per cent of retired Canadians said they are currently living the retirement they
hoped for.

However, 28 per cent said they are afraid of running out of money for their retirement over
the longer term.

Regionally, retirees in Quebec and Manitoba and Saskatchewan were among
the most likely to say they are currently living the retirement they
planned for (74 per cent), while retirees in British Columbia were among the least likely (60 per cent).

British Columbia retirees were among the most likely (45 per cent) to say they are afraid of running out of money for their retirement,
while Atlantic Canadians were among the least likely (21 per cent)

"While it is positive to see that a majority of retired Canadians are
living the retirement they hoped for, our poll findings also show there
is concern around whether their retirement savings will sustain them in
the years to come," said Christina Kramer, Executive Vice President,
Retail Distribution and Channel Strategy, CIBC. "There are some unique factors facing today's retirees as they look to
the years ahead, including low interest rates on savings and the need
to make their retirement funds last longer than previous generations,
which makes long range planning even more important."

Planning Doesn't End With Retirement

While many Canadians focus on how much they need to save in order to
reach retirement, it is just as important to focus on how you will
convert your savings to income that will last throughout your
retirement.

Only 62 per cent of retired Canadians say they have a plan to help them determine how
long their savings will last and how much they can withdraw each year
to support their lifestyle.

Among those with a plan, there was a even split in how they developed
their plan - with 31 per cent saying they have a plan with an advisor and 31 per cent saying they have a plan they developed on their own.

"Having a plan you can be confident in can contribute to your peace of
mind and allow you to enjoy your retirement with a clear view of how
you will make your finances work over the long term," noted Ms.
Kramer. "Considering the number of factors retirees face today, a
conversation with an advisor can help ensure all components of your
retirement are accounted for."

Ms. Kramer also noted that those doing their own planning would likely
benefit from reviewing their plan with an advisor. "Even if you choose
to do much of your own planning when it comes to your finances, an
advisor can serve as a useful sounding board to check your assumptions
and offer solutions you may not have considered."

Retirees More Vulnerable to Financial Shocks

While the concerns of today's retirees were primarily focused on the
long term, poll results also show that more than half of retired
Canadians indicate that a short term financial shock could create a
challenge in managing cash flow:

Given their current income and cash flow, 54 per cent of retired Canadians said that taking on a new $500 monthly payment
would be unmanageable

Within this group, 34 per cent said it would be very unmanageable and 19 per cent said it would be somewhat unmanageable

This suggests that some retired Canadians may not be financially
prepared to pay for costs associated with an unexpected emergency -
such as needing a new roof or replacing a car - which could add to
their concerns about running out of money in the future.

"It's important to plan for your long term retirement goals, but your
plan should also include an emergency savings component," said Ms.
Kramer. "You may have to reevaluate how much you are able to withdraw
each year to ensure you do have savings that could be used in the event
of an emergency to avoid taking on a new monthly debt payment that can
impact your lifestyle."

Financial Advice for Retired Canadians

Meet with an Advisor to review your finances - You need to understand
how much income you generate from your savings combined with your
pension or income you continue to earn. This will help you determine
what level of retirement expenses are appropriate for you and allows
you to make changes to your retirement strategy today if required.

Minimize and eliminate debt - One of the most effective ways to make
your retirement savings go further is to minimize or eliminate debt
repayment in retirement. This reduces interest costs and increases cash
flow.

Plan for tomorrow - today's retirees' are living longer, healthier
lives. An advisor can help you develop a comprehensive plan that
ensures you have the financial ability to live the retirement you hoped
for throughout your retirement, regardless of any unexpected
emergencies that may arise.

For Reference - Summary of Key Data

Percentage of retired Canadians that said they are currently living the
retirement they hoped for, by region:

National Average

69%

BC

60%

Alberta

66%

Man/Sask

74%

Ontario

70%

Quebec

74%

Atlantic Canada

71%

Percentage of retired Canadians that said they are afraid of running out
of money for their retirement, by region:

National Average

28%

BC

45%

Alberta

29%

Man/Sask

32%

Ontario

26%

Quebec

23%

Atlantic Canada

21%

Percentage of retired Canadians that given their income and cash flow,
taking on a new $500 loan payment would be unmanageable, by region:

National Average

54%

BC

66%

Alberta

39%

Man/Sask

50%

Ontario

50%

Quebec

60%

Atlantic Canada

52%

Results are based on a CIBC poll conducted by Leger Marketing, via a Web
survey. These data were gathered in a sample of 867 retired or
pre-retired Canadians between September 18 and 21, 2012.

CIBC is a leading North American financial institution with nearly 11
million personal banking and business clients. CIBC offers a full range
of products and services through its comprehensive electronic banking
network, branches and offices across Canada, and has offices in the
United States and around the world. You can find other news releases
and information about CIBC in our Press Centre on our corporate website
at www.cibc.com.